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Standalone 2008 File Server, No Domain - Do I need run dns through? Do I need domain?

I have a windows 2008 standard server with 10 licenses with Microsoft. I have 11 computers/devices that will connect. All computers use the same user account and password. I would like to make the file server nothing more than a file server. I assume that if I am licensing on a user basis since all computers use the same smb user name and password to connect the 10 is way more than enough licenses? Can I run without a domain and simply as a workgroup server? For my computers to find the server does the 2008 have to be the DNS server on the network or can I use my router since I am not using a domain?
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rindi
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